EBIT & EBITDA Calculator

Compute operating profit (EBIT) and cash proxy (EBITDA) from simple inputs or a detailed income layout. Fully client-side.

Inputs & Options

Mode: Simple

Provide any two and the tool derives the third.

Formula: EBIT = EBITDA − D&A + Other operating.

Results

EBITDA
£0.00
EBIT
£0.00
D&A
£0.00
Other operating
£0.00
EBITDA vs EBIT
EBITDA EBIT
EBITDA margin
—
EBIT margin
—

Understanding EBIT & EBITDA

This calculator helps you translate an income statement into two widely used business performance metrics: EBIT (operating profit) and EBITDA (a cash-like operating proxy). Whether you are a founder, analyst, or student, it provides a clear way to see how revenue, costs, and non-cash expenses combine into a single operating result. Use it to sanity-check reports, compare periods, or build a simple operating model for budgeting.

Think of EBIT as profit from core operations before interest and taxes. It includes depreciation and amortization, which represent the cost of using long-lived assets over time. EBITDA adds those non-cash charges back, giving a rough picture of operating cash generation before financing and taxes. Neither metric is the same as net income or cash flow, but they are commonly referenced in valuation, credit analysis, and performance benchmarking because they focus on the operating engine of the business.

Formulas in plain language

  • EBITDA = Revenue − Cost of Goods Sold − Operating Expenses
  • EBIT = EBITDA − Depreciation & Amortization + Other operating

“Other operating” covers recurring operating items that sit outside standard OPEX, such as service credits or inventory write-downs. The calculator shows both the absolute values and the EBITDA margin and EBIT margin, which express profitability as a percentage of revenue.

How to use the calculator

  1. Pick a mode: Simple (direct inputs) or Detailed (income statement style).
  2. Enter revenue, COGS, and operating expenses in Detailed mode, or enter EBITDA/EBIT plus D&A and other operating in Simple mode.
  3. Click calculate to see EBIT, EBITDA, and both margins along with the chart.
  4. Adjust inputs to run quick “what-if” scenarios and compare periods or business models.

Real-world examples: a SaaS company might use EBITDA to compare cash-like performance across quarters, while a manufacturer might focus on EBIT to see the impact of depreciation from equipment. A lender could review EBITDA for debt coverage, while an operator might track EBIT margin to assess operating efficiency. Use the results as a learning and planning aid, then pair them with cash flow and capital expenditure analysis for a complete picture.

Informational only — not accounting advice. Keep inputs on the same period basis (monthly, quarterly, annually) for consistent results.

5 Fun Facts about EBIT & EBITDA

Born in the LBO boom

EBITDA took off in the 1980s cable-and-telecom buyout era because those businesses were drowning in depreciation while throwing off cash.

Deal history

Covenant gymnastics

Lenders often set debt limits as a multiple of Adjusted EBITDA—watch for add-backs like “run-rate synergies” or “one-time” costs that can quietly inflate it.

Bank math

Aging makes EBIT rise

With straight-line depreciation, a plant’s EBIT can drift higher each year even if output is flat, simply because the depreciation charge is fixed while revenue grows.

Depreciation quirk

Capex blind spot

A data center can post glossy EBITDA while pouring cash into new servers—EBITDA ignores capital intensity, so pair it with capex or free cash flow.

Capital intensity

Cash can beat EBITDA

Subscription-heavy businesses sometimes run negative EBITDA but positive cash because customers pay upfront, creating a working-capital tailwind.

Timing twist

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